The company GCT Semiconductor Holding Inc. (NYSE: GCTS), specializing in advanced 4G and 5G semiconductor solutions, announced the signing of a term loan agreement worth $10.7 million (approximately 15 billion South Korean won) with Anapass, Inc., its largest shareholder and strategic partner.
The goal of the transaction is to strengthen working capital and complete preparations for volume production of its 5G chipsets, following successful completion of the sampling and validation phase with key customers like Orbic North America and Airspan Networks, which recently received positive feedback from joint projects with Gogo.
Investors’ Confidence in the 5G Strategy
John Schlaefer, CEO of GCT, stated:
“We greatly value Anapass’s ongoing support. This financing reflects confidence in the commercial launch of our 5G chipset and the growth opportunities ahead of us.”
The company anticipates beginning volume shipments in Q4 2025, solidifying its commitment to the next-generation connectivity market.
Loan Details
- Amount: $10.7 million
- Interest: 7% annually, payable monthly
- Maturity: one year
- Collateral: Secured senior loan
The funds will be used to cover working capital needs and the final phase of production line preparations.
GCT and Its Role in the 5G Ecosystem
GCT is a fabless designer with extensive experience in 4G LTE solutions, which have been used in commercial devices such as CPEs, routers, hotspots mobile devices, and smartphones for leading global operators. Its system-on-chip (SoC) integrate radiofrequency, baseband modem, and digital signal processing, enabling complete 4G and 5G platforms with low power consumption, high reliability, and cost competitiveness.
Strategic Partner: Anapass
Meanwhile, Anapass, Inc. (KOSDAQ: 123860), GCT’s strategic partner and largest shareholder, is a fabless manufacturer specializing in integrated circuit solutions for displays, serving clients like Samsung Display. The company seeks to expand into next-generation applications in AI PCs, tablets, automotive, and smartphones through high-efficiency SoC architectures.
Market Context
GCT’s move reflects the increasing competitive pressure within the 5G ecosystem, where companies like Qualcomm, MediaTek, and Samsung Foundry have already deployed multiple generations of chipsets. The secured capital will enable GCT to enter large-scale production and accelerate its penetration into segments such as network infrastructure, industrial devices, and advanced connectivity for cloud and artificial intelligence.
via: GCT